Hudbay Minerals announced a major milestone for its Copper World project in southern Arizona, as it has now secured all the necessary state-level permits for development. The final permit, an air quality permit issued by the Arizona Department of Environmental Quality (ADEQ), was received on Thursday, January 2, completing the permitting process for the ambitious project.

The Copper World project, located in the heart of Arizona’s mining region, aims to produce 85,000 tonnes of copper annually. With the air quality permit now in hand, Hudbay has successfully obtained three key state permits, including earlier approvals for aquifer protection and land reclamation. This marks the completion of the first phase of Hudbay's three-pronged plan for the project, referred to as the 3-P (three prerequisites) plan.

According to Hudbay’s updated prefeasibility study for Phase I, the Copper World project is estimated to have an after-tax net present value (NPV) of $1.1 billion at an 8% discount rate, with an IRR of 19%, based on a copper price of $3.75 per pound.

The next phase for Hudbay involves completing a definitive feasibility study (DFS) for Copper World, with an internal rate of return (IRR) of greater than 15%. The company has already begun work on the feasibility study, which is expected to be finalized by the first half of 2026. In parallel, Hudbay will begin exploring financing options for the project, including securing a minority joint venture partner. The goal is for any potential partner to assist in funding the DFS activities in 2025 and to contribute to the final design and construction phases of the project.

Peter Kukielski, CEO of Hudbay, expressed confidence in the future of the Copper World project, stating, “With the receipt of the air quality permit for Copper World, we firmly believe Hudbay now has the best fully permitted copper development project in the Americas.” The successful permit acquisition is expected to pave the way for the next steps in the development process.

The Copper World project is set to significantly boost Hudbay’s copper production, with expectations of increasing its annual copper output by more than 50% from current levels. The initial phase of the project is projected to have a 20-year mine life, making it a key long-term contributor to the U.S. domestic copper supply chain.

Shares of Hudbay Minerals saw a boost following the news, rising 5.0% to C$12.24 per share by mid-afternoon. The company’s market capitalization stands at C$4.8 billion.